Service Processes – OM in the News

Efficiency or Identity? A Dilemma for Fast Food Restaurants

Minimalism is in; Googie architecture is out.

Red roofs, neon golden arches, and other bright-colored structures have practically disappeared from the fast food landscape. They have been replaced by boxy, sleek designs that reflect both cultural and economic trends. Whether or not these new designs are less aesthetically pleasing than their older counterparts is a matter of personal taste. Fast food chains’ primary goal remains to give customers what they want.

Video Spotlight: The Decline of Pizza Hut…What […]

By Corinne M. Karuppan, Ph.D.|2023-03-14T23:06:07+00:00March 15, 2023|Tags: automation, competitivness, delivery, lead time, location, productivity, service design, service quality, strategy, value, waiting lines|

What Is the Future of Traditional Grocery Stores?

Will the traditional grocery store become a thing of the past, or will it continue in its current form?

In the not too distant past, virtually all shopping was done in-person in the store. Online ordering with either pickup or delivery was a novelty. However, COVID escalated the use of pickup and delivery of groceries (either retail delivery or third-party delivery, such as DoorDash).

Online grocery sales (pickup, delivery, and ship-to-home) represented about 12% of grocery sales in January 2023—up slightly over […]

By Ross L. Fink, Ph.D.|2023-03-01T22:22:31+00:00March 1, 2023|Tags: delivery, facility location, location, online order fulfillment, perishable inventory management, service blueprint, service delivery, service processes|

Restaurants Flex Their Strategic Muscles to Fight Inflation

After COVID, inflation is now a major threat to restaurants’ financial viability.

How have they responded? By relying on their competitive strengths in operations. Big chains have used their size to control purchasing costs, whereas mom and pop restaurants have emphasized their authenticity and superior quality. Both are attempting to maintain customer loyalty and mitigate new threats with existing assets and resourcefulness.

Video Spotlight: Restaurants Grapple with Rising Costs (September 15, 2022, CNBC Television)

This post is based […]

By Corinne M. Karuppan, Ph.D.|2022-12-07T21:49:13+00:00December 8, 2022|Tags: competitivness, economies of scale, mix flexibility, product quality, service quality, strategy, value analysis|

Chick-fil-A’s Three-Day Workweek

A Chick-fil-A restaurant in Miami has gone to a 3-day workweek.

As Chick-fil-A restaurants are not open on Sundays, they have created 2 groups—referred to as pods. Each pod works 3 consecutive 13- to 14-hour days, and then has 4 days off. They also have one seven-day stretch of time off per month, and rotate weekends off.

In addition to the employees that are in the pods, they have other employees that follow more traditional schedules.

The 3-day workweek appeals to many workers. While […]

By Ross L. Fink, Ph.D.|2022-11-27T21:13:20+00:00November 27, 2022|Tags: job design, lean operations, productivity, scheduling, waste reduction, work force scheduling|